You already know by now that you are not the only entrepreneur on earth, yes, and wait, that is not to burst your bubble.
As you may already know, venture capitalists attend to quite a growing number of entrepreneurs on each passing day and if you do not know how to catch their attention, then you will just be a pass.
Definitely, no one likes to work in vain, so the good news is you can surpass your contemporaries once you can impress the investor.
How do you impress venture capitalists?
Get the ball rolling
Having an idea is good, but boxing it is not at all alluring. The problem you intend to profer a solution to will not be around for too long, and you are not the only one who has got the idea too, so it is better to set the ball rolling.
Venture capitalists are more impressed when you talk about a company already in business, there is an assurance you know what you are doing and talking about.
When you talk about your already existing business, the VC knows you are a risk-taker and will be ready to take a risk for you too.
Have a Tight Executive Summary
It takes only about 10 seconds to impress an investor, hence you have to be apt. You do not want to go for a pitch with a 100 pages business plan.
You definitely can not impress an investor with enormous writing. Make your business plan as short, precise and simple as possible.
Do an executive summary instead, include relevant key points, state your kind of business, what it does, your market, business algorithm and the number of funds required. This will save you a lot of stress.
Also read, 5 Things Investors Should Know about your Startup
Network! Network! Network!
Oftentimes, all you need is someone that knows someone who knows someone that can help you. Start building a network you can always rely on.
Many times a venture capitalist will only give your pitch attention because you were referred to him by someone he knows. You may even know someone that your investor may be interested in, so you never can tell.
Building a network of important people, it will help you on your journey to success, especially as an entrepreneur.
Every entrepreneur has a passion for what they are doing and there is something that drives them, but no one can know anything about this so called passion except it is displayed.
When pitching investors, do not give room for fear and anxiety, public speaking might be a bit of a big deal but it’s really nothing.
You have to be passionate, honest and sincere in the way you pitch your business to the venture capitalist.
Now, this is not about dancing to music or anything, it is about letting your voice be heard.
Show the VC how much your business means to you and how far you are willing to go.
Know Your Market and Competition
You are not the only one! The earlier this sticks, the better. You must know your market and know your competitors as well.
The VC wants to see that you know your competitors, what they are doing and what makes you different.
Make reference to all facts and figures that ascertain you have a market for your idea, and how you intend to make a difference.
To stand out from the crowd, you should be able to prove your business can and will generate revenue.
Also read, Preparing for Seed Funding? Take Note of these 8 Tips
Want to impress a VC? You definitely do not want to be sneaky or tricky. The VC will see right through you.
There is no need to build a castle in the air, be realistic!
Do not make up or inflate numbers, that is definitely not impressive. Be sure to present accurate information on important revenue drivers; customers, selling price, cost of production, sales, marketing, and other expenses.
Show The Venture Capitalist Money Will be Made
Yes! That is right! Money must be made, that is the goal. You have to be able to convince the Venture Capitalists that your collaboration will earn huge returns.
Success is not a coincidence, so you have to be prepared before going to pitch your business to a venture capitalist.
These lots are not easily swayed or convinced. Show them you have done your homework by demonstrating how, with the help of your team, of course, one tree can not make a forest, your product, vision, market strategy and opportunities can all work together as a force to propel your business to great heights and beyond.
This way, you can convince venture capitalists to go on a journey with you.
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